GBPUSD edged higher last week, helped in part by better-than-expected UK employment data.
But this could be as good as it gets, according to analysts at Commerzbank, with the recent rally expected to fizzle out around 1.3200/67, leaving the market under pressure.
“The pattern on the chart is no longer a symmetrical triangle but appears to be developing into a larger descending triangle pattern,” according to the German bank’s analysts.
“The focus is on the 1.2797/50 July low and Fibo and a close below here will be regarded as very negative and target 1.2060. Key resistance is now the top of the triangle at 1.3367.”
GBPUSD trades at 1.3075.